Finance Minister Dr. Nigel Clarke, says the government will continue on the path of debt reduction as the world continues to grapple with one of the most difficult economic periods in recent history.

He’s reacting to news from the World Bank that 70 per cent of developing and emerging economies are likely to fall into recession due to high indebtedness caused by the Covid-19 pandemic and ongoing economic shocks.

However, Jamaica is among the few exceptions which Dr. Clarke ascribes to prudent financial planning.

Chevon Campbell tells us more.

As the World Bank forecasts a major fall off in economic growth over the next few years, Dr. Clarke says the writing was already on the wall.

He says this is consistent with his warnings as far back as his budget presentation in 2021.

The World Bank has slashed its expectations for global growth as pandemic shocks continue to disrupt supply chains.

This is coupled with the ongoing conflict in the critical breadbasket region of Eastern Europe.

There’s also a concern of further weather related shocks as the Atlantic Hurricane Season gets underway.

The dire projections have left already heavily indebted developing nations in a precarious position,

While not unscathed, Jamaica is among the few low and middle income economies still expected to maintain growth up to 2024, albeit at a slower rate.

Dr. Clarke says the report should be encouraging to the nation and a signal its on the right path.

He says the further pursuing debt reduction is key to building further resilience.